Part of our job here at Red Rock Secured is to watch trends in the metals trading space. While 2020 saw the value of silver swell, the appreciation is far from being over yet. Here are the three key trends that are on our radar:
Long-term Investor Interest
As many investors are watching the macroeconomic trends that have been driven by a depreciating U.S. dollar and a need for greater investment security as national debt rises, many traditional investment strategies are becoming increasingly volatile.
Silver prices in 2020 rose sharply, approaching gains of nearly 50% for the year after lagging other precious metals such as palladium and gold in 2019. A flight to quality, coupled with some intriguing long-term trends has driven the price of silver in addition to the already strong gains in gold and other precious metals.
Also, the need for the precious metal is on the rise on a number of new fronts.
Technology’s Dependence on Silver
Demand for silver is likely to grow for years to come as applications for the precious metal span high-end technologies such as 3-D printing components and even within the coming wave of 5G communications.
Specifically, the electronic components that enable 5G technology will rely heavily on silver to make the platform perform. Silver will also take center stage in the future 5G connected world as observers see silver playing a growing role in all aspects of the Internet of Things to come.
Silver and Sustainability
Investment analysts forecast that annual silver demand could climb 87% over the next 15 years if the U.S. energy sector alone moves to renewables.
Silver, surprisingly, is at the heart of renewable energy initiatives from its use in solar panels. Calls for a carbon pollution-free power sector by 2035 would require rapid deployment of renewable wind and solar power as well as electricity storage. Should this push into solar photovoltaics that rely on silver occur, analysts predict it could heighten additional demand for silver.
The metal’s use in photovoltaics (the mechanism by which light is converted to electricity) grew by 7% in 2019 and is expected to grow further as more governments look to increase their reliance on renewable energy sources.
You should also keep in mind the role it plays in tech and sustainability.
Experts report that there are more than 10,000 industrial applications that depend on silver, with its use in the high-tech industry set to expand in years to come.
A few examples include:
- 3-D printing – relies on silver-based powder in the printing process.
- 5-G networks – are likely to use a growing amount of silver within electronic applications for years to
come as its use grows.
- Solar Panels – Silver is a key component within
the renewable energy infrastructure that is on the
- RFID Chips – Radio Frequency Identification
Device chips are replacing bar codes in
supermarkets and in supply chain inventories. A
thin layer of sprayed-on silver coats these chips’
Want to learn more or feel like you’re ready to open a Precious Metals IRA? Give us a call at (844) 824-5051. One of our Account Executives will be happy to answer any questions you may have, and walk you step by step through the purchasing process.